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It's no secret that Canada's population is aging rapidly, as the baby boomer generation heads full on into retirement. The growing demographic of seniors in Canada is creating attractive investment opportunities in seniors housing, special purpose and healthcare real estate. At Primecorp Commercial Realty Inc., our Seniors Housing Investment Team, led by veteran Broker Raffaele Guglielmelli, understands the complexities of this growing market, providing our valued investment and operational clients with the critical assets of market knowledge, experience and integrity.

Canada's Aging Population

Seniors housing is a sizable industry in Canada that is only going to grow in the years to come. Investing in a seniors housing development can be a wise move due to the growing cohort of aging Canadians who will need to move into a seniors housing facility in the near to mid-term.

According to the Canadian Council on Social Development, 12.9% of Canada's population is 65 years of age and older. Within the next 20 years, an additional 25% of the population will be in that age bracket. In fact, the Government of Canada has identified seniors as the fastest growing segment of our society:

Seniors make up the fastest-growing age group. This trend is expected to continue for the next several decades due mainly to a below replacement fertility rate (i.e. average number of children per woman), an increase in life expectancy, and the aging of the baby boom generation. In 2011, an estimated 5.0 million Canadians were 65 years of age or older, a number that is expected to double in the next 25 years to reach 10.4 million seniors by 2036. By 2051, about one in four Canadians is expected to be 65 or over.

Strong Seniors Housing Market

These statistics reinforce the market potential and attractiveness of investing in seniors housing as an industry with high demand and great potential for strong ROI. Seniors are a significant portion of our population needing a place to live that fits their unique needs. They are our grandparents and parents, older siblings, aunts and uncles who have worked hard their entire lives and deserve to live in a well-maintained, high quality home in which to enjoy their golden years. At Primecorp Commercial Realty, we understand and appreciate this market and have some attractive seniors housing investment opportunities available for consideration.

Seniors are looking to make this move for many reasons including living in community with other seniors, having the peace of mind knowing that the resources for assistance are proximate and having interesting avenues for social engagement that are more readily available than when they’re living on their own.

Primecorp Listing: Waterfront Retirement Residence

Our Seniors Housing Investment Team represents divergent offerings from big city, multi-level, to single storey rural properties. A current example (depicted above) is this stunning circa 2012, 3 storey, 95 unit waterfront congregate care facility; located to the east of Ottawa, Ontario it reflects in-floor radiant heating, designer kitchenettes, cable, telephone, high speed internet, and hotel styled services. It is situated in an established neighbourhood and provides residents with proximity to many retail and social amenities.

Primecorp Seniors Housing Investment Team

Having strong demand over the long-term is only one side of the equation when it comes to profitable investing in seniors housing. The capacity to skillfully navigate the particulars of a deal is equally important with this or any other type of commercial real estate investment.

The Primecorp Seniors Housing Investment Team, led by Raffaele Guglielmelli, recently transacted a $217 million portfolio of six retirement residences in the National Capital. With over 26 years of experience, Raffaele is considered a market expert in seniors housing and has established significant centres of influence with local, national, and international owners and operators. Examples of some of Raffaele's most recent deals include: Elmsmere Place Retirement Living, a 55 suite, 4 storey facility in Ottawa; Barrie Manor, a 77 unit, 3 storey home that's been operating in Barrie, Ontario for 27 years; and Le Pavillon, a 73 room retirement residence located in Embrun, Ontario, 20 minutes from Ottawa.

Collage of Elmsmere, Le Pavillon and Barrie Manor

Get Primecorp in Your Corner

Primecorp Commercial Realty Inc. is well positioned to advise and assist investors and operators in all aspects relating to the seniors housing market:

Investment appeal for well leased, well located, well maintained assets continues to remain strong. Indeed investment demand and appetite for all markets – primary and tertiary – for seniors housing (independent and assisted living) and healthcare related real estate will be in a growth cycle for the foreseeable future. Given this robust demand, it is likely that cap rates will continue to compress as well – especially true in this low interest environment we find ourselves!
- Raffaele Guglielmelli